11 November 2019 (closed)
USD/IDR (14,098) +16.00 +0.11%
EUR/IDR (15,509) +3.52 +0.02%
Jakarta Composite Index (6,148.74) -29.25 -0.47%
Today (11/01), the government of Indonesia will announce its decision regarding the ban on exports of unrefined mineral ore. This ban, set in the controversial Mining Law No.4/2009, should become effective starting from Sunday 12 January 2014 unless the government will decide to delay full implementation. Industry Minister MS Hidayat stated that the government is still debating about the matter. The new law is controversial because it hollows regulatory certainty, miners's profitability and leads to increased unemployment.
On the positive side, Mining Law No.4/2009 will lead to more value-added export revenues and makes the country less susceptible to volatile global commodity prices.
It has been reported in Indonesian media that mining companies in Indonesia have already begun to lay off workers. Almost 30,000 workers have been laid off and more than 100 mining companies have temporarily stopped operations according to Poltak Sitanggang, Chairman of Apemindo (Indonesian Mineral Entrepreneurs Association).
A statement from the government is expected later today.
• Indonesia Seeking Middle Way in Unprocessed Mineral Export Ban
• Indonesia's Mining Export Ban Impacts on Current Account Deficit in 2014
• Indonesia Might Delay Implementation of Mineral Export Ban by 3 Years
• Indonesia May Review its Ban on the Export of Unprocessed Minerals
• Go-Ahead for Indonesia's Controversial Ban on Unprocessed Mineral Exports
• Indonesia Studying Temporary Exemption for Export of Raw Minerals
• Export Ban on Unprocessed Minerals Temporarily Pressures Trade Balance